Retail E-commerce Market Expected to Reach $17613.7 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Retail E-commerce Market," The retail e-commerce market was valued at $5.6 trillion in 2022, and is estimated to reach $17613.7 billion by 2032, growing at a CAGR of 12.4% from 2023 to 2032.

Buying and selling goods over the internet is known as retail e-commerce. Retail e-commerce industry includes various components such as online platforms, electronic payment, digital marketing, supply chain & logistics, customer experience, product offering, service offering, and data security & privacy. Furthermore, retail e-commerce includes different types such as business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer (C2C), consumer-to-business (C2B), business-to-administration (B2A), and consumer-to-administration (C2A).  

B2B involves electronic exchange of ownership of products and transfer of services & information between businesses. B2C refers to selling products directly to consumers. C2C means consumers share products between themselves. C2B means consumers producing their own product and making them available online for businesses to purchase and bid on. B2A enables online payment transactions between companies and government bodies. C2A refers to transactions conducted between individual customers and government bodies.  

Major market players have adopted product launch strategies to increase competition and offer enhanced services to their customers in the retail e-commerce industry. For instance, in July 2023, Alibaba Group Holding Ltd. invested $845 million in Lazada, an online retail business in Southeast Asia. The aim behind this strategic implementation is to survive competition from retail e-commerce rivals such as Sea Ltd. and Amazon. Com Inc. In addition, in January 2023, Alibaba Group Holding Ltd. signed an agreement with Hangzhou media of China to develop their online e-commerce platform and to explore deeper into Chinese tech industry. Therefore, such strategies foster growth of retail e-commerce market size in the BFSI sector. 

By product, the apparel and accessories segment dominated retail e-commerce market share in 2022. This is attributed to large global presence of a wide range of apparel and accessory companies. In addition, high demand for changing fashion & trend and rise in the popularity for the same is driving the growth among consumers. However, the groceries segment is growing, this is related to increasing convenience for people to order groceries from their homes rather than physically going to the retailer which is time consuming. 

Depending on type segment, hybrid marketplace dominated the retail e-commerce market analysis in 2022. A large variety of products are available for customers on the online channel. Selecting and buying products takes less time, therefore making it easier for consumers to shop as per their convenience. In addition, consumers are increasingly physically visiting stores due to curiosity and need for fashionable brands to be a part of trend and status symbol. However, the pure marketplace segment is growing, this is attributed to the removal of the lockdown restrictions and high curiosity among people to visit the market to physically check the products. 

Based on the region segment, Asia-Pacific dominated the market in 2022. Due to presence of large number of technology-oriented people and heavy use of digital devices in the region. However, the North America region is growing at an increasing rate due to presence of high-speed internet and increase in the presence of brand manufacturing companies.  

COVID-Impact  

The heavy impact of virus has accelerated finance technology techniques, such as mobile wallets, contactless payments, and online payment platforms. These techniques are delivering enhanced secuirty, improved hygeine and utmost convenience. Health and safety standards rose during the virus impact and e-commerce platforms gained ten times more prominence during the period to ensure customers safety, employees safety, contactless delivery, curbside pick-up and improved sanitation protocols.

Key Findings of the Study 

• By product, apparel and accessories segment led the retail e-commerce market growth in terms of revenue in 2022.  

• By type, hybrid marketplace segment led the retail e-commerce market trends in terms of revenue in 2022.  

• By region, Asia-Pacific generated the highest revenue in 2022.  

The report analyzes profiles of key players operating in the retail e-commerce market such as Alibaba Group Holding Limited, E Bay Inc., The Kroger Co., Dba Rakuten, Walmart Inc., Coupang Corp, Wayfair Inc., Etsy, Inc., Amazon. com Inc., and Otto GmbH & Co KG. These players have adopted various strategies to increase their market penetration and strengthen their position in the retail e-commerce market share.